According to PMBOK guide, Schedule Variance is defined as “the measure of schedule performance expressed as the difference between the Earned Value (EV) and the Planned Value (PV)”. At any given point of time, it tells us how much ahead or behind the planned delivery date or baseline schedule.
Schedule Variance along with Schedule Performance Index is used to measure the magnitude of variation to the original schedule baseline.
Schedule Variance (SV) Formula –
Schedule Variance = Earned Value – Planned Value
SV = EV – PV
if the value of SV is positive – Your project is ahead the baseline schedule
if the value if SV is negative – Your project is behind the baseline schedule
and finally, if the value if SV is equal to zero – Your project is on track and is neither being or ahead of the baseline schedule
Also, SV can be calculated by subtracting the Budgeted Cost of Work Scheduled (BCWS) from the Budgeted Cost of Work Performed (BCWP). The BCWS measures the budget for the entire project and the BCWP measures the cost of actual work done. The difference is the schedule variance.
Sample Questions –
1. Bryan is the project manager of a construction based company. He has recently taken a deal to complete the construction of a building within 9 months with a budget of 70,000 dollars. However, after 6 months 60% of the work was completed and 40,000 dollars was spent for the work. So for the current situation find the schedule variance (SV) of the project?
- SV is equal to zero
- The project is ahead of schedule and SV is 2000
- SV is -2000 and is behind the schedule
- The project is behind schedule and SV is 2000
- SV is -2000 and is ahead of the schedule
Correct Answer – Here the Earned Value EV is 60% of $70,000 which is equal to 42,000. However, 40,000 dollars was spent for completing this work. Hence the Planned Value PV is 40,000. Hence the Schedule Variance becomes EV-PV = 42,000 – 40,000 = 2000. The schedule variance if positive means we are ahead of schedule. So Option B is the correct choice.